Madras High Court Upholds Rs 1.5 Crore Income Tax Penalty Against Actor Vijay
In a significant legal development, the Madras High Court on Friday dismissed a petition filed by prominent actor and Tamilaga Vetri Kazhagam (TVK) founder Vijay, challenging a substantial penalty of Rs 1.5 crore imposed by the Income Tax Department. The penalty was levied for allegedly failing to disclose his true income during the assessment period for the financial year 2015-16.
Court Rejects Actor's Challenge to IT Department's Demand Notice
Justice Senthilkumar Ramamoorty delivered the order, rejecting Vijay's plea which contested the demand notice issued by the tax authorities. According to court documents, Vijay had declared an income of Rs 35.42 crore for the financial year 2016-17. However, the Income Tax Department asserted that based on documents seized during a raid at his residence in 2015, he had not disclosed an additional Rs 15 crore earned from the movie 'Puli'.
The department imposed the Rs 1.5 crore penalty through an order dated June 30, 2022. Vijay subsequently filed the present petition challenging this order. Initially, a single judge admitted the plea on August 16, 2022, and granted an interim stay against the operation of the department's order, providing temporary relief to the actor.
Legal Arguments and Court's Final Ruling
In his petition, Vijay contended that the penalty should have been issued before June 30, 2019, arguing that the belated order passed in 2022 was invalid and should be set aside. He maintained that the delay rendered the penalty procedurally flawed.
Opposing these submissions, the Income Tax Department defended its actions, stating that the penalty imposed on Vijay was fully valid under the provisions of the Income Tax Act. The department argued that the petition lacked merit and should be dismissed to uphold the integrity of tax enforcement.
After considering both sides, Justice Senthilkumar Ramamoorty concurred with the submissions made by the Income Tax Department. The court found the penalty to be legally sound and dismissed Vijay's plea, thereby upholding the Rs 1.5 crore penalty. This ruling reinforces the department's authority in pursuing cases of alleged income concealment, even involving high-profile individuals like film stars and political figures.
The case highlights ongoing scrutiny of financial disclosures by celebrities and underscores the legal consequences of non-compliance with tax regulations. Vijay, a leading figure in Tamil cinema and politics, now faces the financial repercussion of this judicial decision, which may set a precedent for similar tax disputes in the entertainment industry.
